What to consider when buying commercial buildings

On Behalf of | Jul 7, 2020 | Real Estate |

Businesses in Mississippi and throughout the country may benefit from purchasing their own commercial buildings. One of the key benefits of buying a building is that a company won’t run the risk of being asked to leave by a landlord. If a lease is allowed to expire, a company may be required to restore a space to its previous condition. Ultimately, an organization may have to pay a significant amount of time and money making repairs and finding a new space from which to operate.

Even if a business has the chance to renew a lease, a landlord may increase the monthly rent or add additional fees. By owning a building outright, companies will likely have fixed mortgage and other holding costs for years or decades to come. A warehouse, factory or office structure may be used as collateral to obtain loans or lines of credit to help further grow a company.

Finally, companies that purchase their own commercial structures won’t have to worry about a landlord failing to make repairs promptly. It is important to note that there may be some downsides to buying instead of renting a space. For instance, there is no guarantee that the value of the property will appreciate over time, and in some areas, renting may actually be less expensive than buying.

Business owners and others who are looking to acquire commercial real estate may want to consult with an attorney before doing so. A legal professional may be able to review a purchase or lease agreement before it goes into effect. Doing so may help ensure that a deal is as favorable to a buyer or tenant as possible. A lawyer may help a person resolve any disputes that may arise after a deal is completed.